Deck 12: International Law

Question 1

The issuing bank's commitment to pay is given to the seller directly in the case of a letter of credit.

Answer 1

False
Explanation: The issuing bank's commitment to pay is given, not to the seller directly, but to a confirming bank located in the United States from which the seller obtains payment.

Question 2

The International Court of Justice has been a major force in settling disputes since it began functioning in 1946.

Answer 2

False
Explanation: Article 38 of the Statute of the International Court of Justice (ICJ) is the traditional place for ascertaining what public international law is. The ICJ has not been a major force in settling disputes since it began functioning in 1946.

Question 3

The European Union, as it is known today, began when six nations signed the Treaty of Rome.

Answer 3

True
Explanation: In 1957, six European countries, Belgium, France, Germany, Luxembourg, and the Netherlands signed the Treaty of Rome, creating the European Community. Six successive enlargements created the European Union (EU), as it is known today.

Question 4

Irrevocable letters of credit do not recognize the concept of substantial performance.

Question 5

A country may choose to accept the Court's jurisdiction only when the use of the Court may suit its own interests.

Question 6

The Convention on the International Sale of Goods (CISG) outlines standard international practices for the sale of goods.

Question 7

The conduct that violates the The anti bribery provisions of the FCPA may also give rise to a private cause of action for treble damages under the Racketeer Influenced and Corrupt Organizations Act (RICO).

Question 8

The World Trade Organization is the only global international trade organization dealing with the rules of trade between nations.

Question 9

If the United States enters into a trade deal with Costa Rica, with Costa Rica as the seller, and an irrevocable letter of credit is involved, the issuing bank will be located in Costa Rica.

Question 10

Irrevocable letters of credit have little effect on reducing uncertainties in international transactions.

Question 11

Under U.S. law, a firm or individual can compel the U.S. government to press a claim on its behalf before the International Court of Justice.

Question 12

By using of a letter of credit, the buyer need not pay the seller for goods prior to shipment and the seller can obtain payment for the goods immediately upon shipment. Use of a letter of credit in the transaction reduces the uncertainties involved.

Question 13

The International Monetary Fund (IMF) encourages international trade by maintaining stable foreign exchange rates and works closely with commercial banks to promote orderly exchange policies with members.

Question 14

The WTO does not have the power to hear disputes involving member states.

Question 15

The Convention on the International Sale of Goods does not require contracts for the sale of goods to be in writing.

Question 16

Public international law examines relationships created by commercial transactions.

Question 17

The CISG applies to contracts for the commercial sale of goods (consumer sales for personal, family, or household use are excluded) between parties whose businesses are located in different nations.

Question 18

The Convention on the International Sale of Goods resolves all areas of contract law.

Question 19

Expropriation is the seizure of foreign-owned property by a government.

Question 20

Under the CSIG, parties are not allowed to negotiate contract terms and cannot opt out of the CISG.

Question 21

When a government assumes ownership of confiscated property, it also includes the process of _____.

A) nationalization
B) expropriation
C) power of eminent domain
D) mortgage
E) exclusion

Question 22

Which of the following is not a permissible payment for routine government action under the Foreign Corrupt Practices Act?

A) Obtaining permits.
B) Processing visas.
C) Travel expenses to a foreign official for performing a contractual obligation.
D) Scheduling inspections associated with the transit of goods across the country.
E) Loading and unloading cargo.

Question 23

Which of the following is a risk involved with regard to the sale of U.S. strategic products and technology abroad?

A) Import controls
B) Material controls
C) Export controls
D) Sales controls
E) Transaction controls

Question 24

The World Intellectual Property Organization (WIPO) Arbitration and Mediation Center hears cases involving domain name disputes and cyber-squatting.

Question 25

The notion of sovereign immunity has always been, and continues to be, absolute in its application.

Question 26

What does the term 'knowing' refer to under the FCPA?

A) Conscious disregard and deliberate indifference.
B) Working with a country that is indexed for high corruption practices.
C) Stating in an official document that all parties involved are free from corrupt practices.
D) Settlement of payments as per the contract.
E) Understanding of the antibribery provisions and the laws that prohibit corruption.

Question 27

A nationalization of assets is most likely to be considered an act in the "public interest" and immune from suit under the FSIA.

Question 28

The arbitration process likely is more will be more streamlined and easier for the parties to understand than litigating the dispute in a foreign court.

Question 29

Intermediaries, under the FCPA, are:

A) given restricted rights to make payments to a foreign official.
B) allowed to make payments to a foreign official.
C) prohibited from making payments that can go to a foreign official.
D) prohibited from all types of international trade.
E) a recommended mode to make payments to foreign officials.

Question 30

The Wassanaar Arrangement was entered into by 33 countries in order to control:

A) monetary value fluctuations encountered by nations when conducting international trade.
B) the spread of military and dual use technology to unstable nations.
C) the quality control of food and perishables between nations with different individual quality control regulations.
D) price gouging by dominant countries when dealing with smaller or weaker countries.
E) the impact of corruption on international trade, investments, and business policies.

Question 31

_____ is used in the context of international law as the seizure of foreign-owned property by a government.

A) Nationalization
B) Possession
C) Power of eminent domain
D) Export Controls
E) Expropriation

Question 32

Under the doctrine of sovereign immunity, the foreign sovereign claims to be immune from suit entirely based on its status as a state.

Question 33

Export controls:

A) function in the same way as import controls.
B) are placed on U.S. products and technology abroad.
C) are the confiscation of foreign-owned property by a government.
D) are similar to nationalization.
E) are the power of eminent domain.

Question 34

In suing a foreign firm in the United States, a plaintiff must comply with the terms of the Convention of International Sale of Goods.

Question 35

_____ is used in the context of international law as the seizure of foreign-owned property by a government.

A) Nationalization
B) Possession
C) Power of eminent domain
D) Export Controls
E) Expropriation

Question 36

A licensing agreement allows an international business to enter a foreign market without any direct foreign investment.

Question 37

The Hague Service Convention is a treaty designed to provide a simpler way to serve process abroad when suing foreign businesses.

Question 38

Parties can use arbitration to avoid the unwanted publicity that often results in open court proceedings.

Question 39

Which of the following is true of the Foreign Corrupt Practices Act of 1977?

A) It prosecutes any foreign official body that bribes American officials.
B) It is designed to watch over the import-export transactions.
C) It prohibits American citizens from doing business with countries that have a high level of corruption.
D) It is designed to stop bribery of foreign officials by American citizens.
E) It governs the corrupt practices in countries doing business with American citizens.

Question 40

The Alien Tort Claims Act was enacted 20 years ago to address tort actions arising from the recent initiatives in global trade.

Question 41

In 1994, the Uruguay Round incorporated all of the following principles from the General Agreement on Tariffs and Trades except:

A) equalization of import quotas.
B) national treatment.
C) non-discrimination.
D) elimination of trade barriers.
E) reducing tariffs.

Question 42

______ opened up many opportunities for business between Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, the Dominican Republic, and the United States.

A) North America Free Trade Agreement
B) Central America- Dominican Republic Free Trade Agreement
C) U.S.-Colombia Free Trade Agreement
D) Uruguay Round Agreements
E) Convention on the International Sale of Goods

Question 43

The International Court of Justice is also called the:

A) World Court.
B) Supreme World Court.
C) World Chancery Court.
D) Court of International Acclaim.
E) World Trade Court.

Question 44

When a buyer receives a receipt from a carrier stating that the goods ordered have been shipped to the designated place for delivery, the receipt is called _____.

A) an irrevocable letter of credit
B) a bill of exchange
C) a bill of lading
D) an identity note
E) a promissory note

Question 45

Which of the following is true of the Convention on the International Sale of Goods?

A) It outlines standard international practices for the sale of goods.
B) It encourages international trade by maintaining stable foreign exchange rates.
C) It promotes economic development in poor countries by making loans to finance necessary development projects and programs.
D) It ascertains what public international law is.
E) It grants jurisdiction to U.S. federal district courts over "any civil action by an alien for a tort only, committed in violation of the law of nations or a treaty of the United States."

Question 46

_____ decides the nature and parameters of EU law.

A) The Parliament
B) The Commission
C) The Court of Justice
D) The Council
E) The Council of Ministers

Question 47

The _____ provides for a dispute settlement mechanism that makes it easier to resolve trade disputes between the United States, Mexico, and Canada.

A) Convention on the International Sale of Goods
B) North American Free Trade Agreement
C) Central America-Dominican Republic Free Trade Agreement
D) Foreign Corrupt Practices Act
E) General Agreement on Tariffs and Trade

Question 48

In the United States, the counterpart of expropriation is called:

A) nationalism.
B) zoning.
C) police powers.
D) eminent domain.
E) confiscation

Question 49

Which of the following is true of the Commission of the European Union?

A) It coordinates the policies of the member states in a variety of areas from economics to foreign affairs.
B) It is composed of elected representatives from each member state.
C) It plays an active role in drafting legislation that has an impact on the daily lives of its citizens.
D) It has joint power with the Council over the annual budget of the European Union.
E) It consists of individuals who represent the will and interests of the entire EU, rather than specific national concerns.

Question 50

Which of the following is a major institution of the European Union?

A) The Secretary Council
B) The International Court of Justice
C) The Council of Members
D) The House of Representatives
E) The Council of Ministers

Question 51

Transactions using _____ involve, in addition to a seller and buyer, an issuing bank in the buyer's country.

A) a bill of lading
B) a bill of exchange
C) an irrevocable promissory note
D) a negotiable instrument
E) an irrevocable letter of credit

Question 52

Which of the following is true of the International Court of Justice?

A) Private parties and corporations have access to the court and can directly present their claims.
B) Using legal devices, firms and individuals can compel the U.S. government to press claims on their behalf before the Court.
C) Only countries that have submitted to the Court's jurisdiction may be parties.
D) The Court has enforcement authority and does not rely on diplomacy or economic sanctions against countries.
E) It is compulsory for all countries to accept the Court's jurisdiction, whether or not the use of the Court suits their interests.

Question 53

Infractions of international law are most frequently settled by:

A) diplomacy.
B) formal charges.
C) economic sanctions.
D) ICJ decision.
E) penalties and damages.

Question 54

The International Court of Justice:

A) is made up of nine judges.
B) allows all nations to initiate a case before it.
C) hears cases of countries that have submitted to the Court's jurisdiction.
D) can render opinions only when faced with an actual case.
E) has been a major force in settling disputes since it began functioning.

Question 55

The _____ encourages international trade by maintaining stable foreign exchange rates and works closely with commercial banks to promote orderly exchange policies with members.

A) World Bank
B) World Trade Organization
C) General Agreement in Tariffs and Trade
D) International Monetary Fund
E) Convention on International Sale of Goods

Question 56

The World Trade Organization was created as a result of the:

A) Geneva Convention.
B) Uruguay Round.
C) Bretton-Woods Conference.
D) Asian-Pacific Round.
E) Convention of International Sale of Goods

Question 57

Generally, international law is classified as:

A) public international law.
B) criminal international law.
C) common international law.
D) civil international law.
E) business international law.

Question 58

The Charter of the United Nations sets forth as its primary goal:

A) combating corruption and corrupt practices in other countries.
B) providing individual measures for the prevention and removal of threats to peace.
C) ensuring that justice is delivered at all levels in all member countries.
D) implementing a just and fair international law that guides international commercial transactions.
E) eradicating cyber-squatting and criminal practices involving the Internet, in all member countries.

Question 59

With respect to the sale of goods, which of the following is true as per the CISG?

A) All contracts for the sale of goods must be written.
B) All contracts for the sale of goods must be in the oral form.
C) Contracts for the sale of goods need not be in writing.
D) The parties should sign the contract in the presence of attorneys.
E) Contracts concerning sale of goods above $500 must be in writing.

Question 60

Which of the following statements is true of sources of international law?

A) Public international law examines relationships between businesses.
B) Public international law uses rules that are binding on all countries in the international community.
C) Private international law examines relationships created by private individuals.
D) Private international law utilizes U.S. law to resolve international business disputes.
E) Public international law examines the relationships between different populations.

Question 61

To sue a foreign firm in the United States, the plaintiff must:

A) establish maximum contacts between the foreign defendant and the forum court.
B) demonstrate that exercise of personal jurisdiction over the defendant will be ineffective.
C) comply with the terms of the Hague Service Convention when serving notice of the lawsuit.
D) comply with the terms of the Convention of International Sale of Goods when filing a lawsuit.
E) establish legal representation in the area of personal jurisdiction.

Question 62

The _____ grants jurisdiction to U.S. federal district courts over "any civil action by an alien for a tort only, committed in violation of the law of nations or a treaty of the United States."

A) Federal Torts Act
B) Alien Tort Claims Act
C) Foreign Tort Claims Act
D) International Tort Act
E) Tort Claims in International Trade Act

Question 63

In many cases, the only legal or political means a firm has to invest directly in a foreign country is to engage in _____, with an entity from the host country.

A) a foreign subsidiary arrangement
B) a franchise agreement
C) a license contract
D) a merger
E) a joint venture

Question 64

Which of the following is true concerning the arbitration of international disputes?

A) Arbitration is not widely practiced and, hence, is not an easily available option.
B) Arbitration creates more publicity than litigation.
C) Arbitration is complex alternative for the parties involved.
D) Arbitration can be compelled, where previously agreed upon by the parties.
E) Arbitration has been proven to have limited effectiveness concerning international disputes.

Question 65

The World Intellectual Property Organizations Arbitration and Mediation Center hears cases involving:

A) international patent and copyright.
B) sovereign immunity.
C) international trademark and trade secret.
D) domain name and cybersquatting.
E) copyright and patent violation.

Question 66

Which of the following is a reason a firm may enter a licensing agreement?

A) Licensing allow firms to enter a foreign market without direct foreign investments.
B) A firm enters a licensing agreement to expand once it has substantial capital.
C) Licensing is the next step a firm must take, after it has established sufficient research and development.
D) Licensing is a technique that firms use when applying management skills and marketing strategies.
E) Licensing agreement is a risk free method to expand in foreign markets.

Question 67

Explain what is expropriation and nationalization.

Question 68

How have U.S. businesses enhanced their business position with foreign countries without paying bribes and violating the Foreign Corrupt Practices Act?

Question 69

Which of the following is true of a joint venture?

A) It takes place when a domestic firm may choose to grant a foreign firm the means to produce and sell its product.
B) It takes place when a company launches another company which it partially or completely owns in a foreign country.
C) It takes place when a company designates a national firm or individual of the host country as its legal representative.
D) It takes place when a company invests in a country by engaging in business with an entity from that country.
E) It takes place when a company merges with a company from the host country.

Question 70

What are the criticisms the FCPA faces for its strict prohibition of American businesses bribing officials of other countries?

Question 71

Which type of a contract can be adopted in case of a domestic firm granting a foreign firm the means to produce and sell its product?

A) Transfer contract
B) Franchise contract
C) Promotion contract
D) Foreign investment contract
E) Foreign subsidiary contract

Question 72

Discuss the role of intermediaries under the FCPA.

Question 73

The Foreign Sovereign Immunities Act codified which of the following?

A) Foreign governments cannot be sued under any cause of action within the United States.
B) Foreign governments can be sued for most causes of action except when participating in commercial acts.
C) Foreign governments cannot be sued for most causes of action but can be sued when participating in commercial acts.
D) Sovereign immunity was abolished making foreign governments liable for all acts committed within the United States, whether commercial or not.
E) Sovereign immunity held that governments could be held liable for nationalization of assets.

Question 74

Which of the following is true of a foreign subsidiary?

A) A foreign subsidiary has fewer formalities in its creation and operation.
B) A foreign subsidiary allows the parent company to have greater control.
C) A foreign subsidiary is one of the cost-effective ways to expand business in foreign markets.
D) A foreign subsidiary must be a national of the host country.
E) A foreign subsidiary is a risk-free alternative that most corporations adopt for global expansion.

Question 75

What are the current penalties for violation of the Foreign Corrupt Practices Act?

Question 76

Under the doctrine of sovereign immunity, the foreign sovereign claims to be immune from suit entirely based on _____.

A) its status as a commercial center.
B) its membership with the World Trade Organization.
C) its status as a state.
D) its political and economic conditions.
E) its commercial acts.

Question 77

The Foreign Sovereign Immunities Act ______:

A) codifies the modern-traditional theory of trade and tariffs.
B) provides immunity for private acts.
C) rejects immunity for commercial acts carried on in the countries trading with the U.S.
D) provides immunity for commercial acts having direct effects in the U.S.
E) rejects immunity for commercial acts carried on in the U.S.

Question 78

Which of the following is true of licensing arrangements?

A) Licensing requires international businesses to make direct foreign investment to enter foreign markets.
B) Licensing often is used by firms as an expansion technique in the domestic market.
C) Licensing agreements must follow the local laws where they operate.
D) Licensing agreements are governed by international trade and business laws.
E) Licensing technology requires substantial capital to expand a company's market.

Question 79

_____ is defined as the supreme, absolute, and uncontrollable power by which any state is governed.

A) Sovereignty
B) Government
C) Integrity
D) Fraternity
E) Federation

Question 80

Grimmy Fast Food Ltd., located in New York, grants Truffle Eateries, a chain of restaurants in Paris, permission to produce and sell Grimmy's famous pizzas. Truffle will launch Grimmy's in Paris and sell the products. This is an example of which of the following?

A) Foreign subsidiary
B) Direct foreign investment
C) Sovereign immunity
D) Franchise
E) International trade